Inter Island Ferry Rates to Increase

(6/24/2002)

Following the recent agreement in principle by the Indonesian Parliament for inter-island ferry rates to increase, it is now widely expected that rates will increase, perhaps as early as sometime in July 2002.

Although many ferry services are privately owned and operated, the tariff the operators can charge is controlled by the Department of Transportation. Increased operating costs including three separate increases in fuel prices since 2000 and a 300% increase in the cost of spare parts since the last increase - have been the source of protests and wild-cat suspension of services in recent months.

Padang Bai to Lembar Rates

In statements made to the press by the Chief of the Lembar, Lombok office of PT ADSDP, - the company operating ferry service between Lembar (Lombok) and Padang Bai (Bali), Mr. H. Ilham Notji, emphasized that now the increase has received Government approval all that remains to be done is for the guidelines governing any increase to be issued by the Department of Transportation.

Bali to Java Rates Also Set to Increase

Ferry Operators in the ports of Gilimanuk (Bali) and Ketapang (Jawa) - the two crossing points between Java and Bali, are hoping that the Government will allow them to increase ferry tariffs by as much as 50-60% within the coming month. Presently pedestrians pay Rp. 2,000 (US$ 0.24); motorcycles Rp. 5,000 (US$0.59); cars Rp. 25,000 (US$2.94); and busses Rp. 36,500 (US$ 4.29) for a one way journey across the straits.

The Bali-Java ferry crossing was the scene of a 24 hour work stoppage earlier this month by operators claiming the current tariff made profitable operations impossible.